Gold Summary for Sept. 15, 2017
NEW YORK spot gold lost $9.80 to $1,319.20 on Friday. The TSX Venture Exchange gained 3.42 points to 779.66 while the TSX Gold Index lost 1.36 points to 200.79. Detour Gold Corp. (DGC) led Canadian golds lower, dropping 34 cents to $15.74 on 6.28 million shares. Gainers were in short supply, although Barrick Gold Corp. (ABX) added 18 cents to $21.07 on 11.40 million shares an d Kinross Gold Corp. (K) added two cents to $5.88 on 62.82 million shares.
George Burns’s Eldorado Gold Corp. (ELD), down eight cents to $2.82 on 32.90 million shares, has wrung two more permits from the balky Greek government, but it wants more. The company had said on Monday that it was suspending operations in Greece: halting investment in its mines, development projects and exploration assets until the government agrees to “engage constructively” with it. On Wednesday, the company got an operating permit for the Olympias mine and an installation permit for Kokkinolakkas. Now, it has approval for a study for the closure of the Old Olympias operation and an installation permit for the (new) Olympias.
Mr. Burns, Eldorado’s president and chief executive officer since he replaced Paul Wright this spring, says that the only approvals still outstanding are an installation permit for the flotation plant at Skouries, as well as other matters pertaining to the Skouries operation. Despite the flurry of permits over the past few days, which Mr. Burns called “a positive step forward,” he appears unwilling to budge from his decision to suspend investment until the Skouries approvals are cleared up. Further, he wants the Greeks to show they are “willing to engage with the company in constructive discussions” before he turns on the investment tap once again.
Eldorado’s plan for Olympias calls for it to produce 125,000 ounces of gold equivalent annually, ramping up to 300,000 ounces in the early 2020s. At Skouries, the company projects average production of nearly 270,000 ounces of gold equivalent from 2020 to 2042, assuming the Greeks get on board.
Darren Blaney’s American Creek Resources Ltd. (AMK), down one-half cent to 5.5 cents on 2.11 million shares, is cheering news from its 20-per-cent-owned Treaty Creek gold project in the Golden Triangle district of northwestern British Columbia. The operator, Walter Storm’s Tudor Gold Corp. (TUD: $0.73), has received assays of up to 10.97 grams of gold per tonne over 1.95 metres from the feeder vein system during preliminary drilling at the HC zone. Mr. Storm, Tudor’s president and CEO, says that he is very pleased with the results so far. He says that the results “have exceeded our expectations” and he and his crew look forward to completing a resource estimate on the HC zone, and at the Copper Belle zone, which is now under way.
Mr. Blaney, American Creek’s president and CEO since the start of 2016, chimed in as well, adding a Howe Street spin to Mr. Storm’s matter-of-fact comments. Mr. Blaney says that the new HC zone, a northern extension of the GR2 zone, “is a bonus that we were not expecting,” adding that he is very encouraged that HC displays “remarkably similar characteristics” to the Eskay Creek deposit. (Dino Cremonese, president of Teuton Resources Corp. (TUO: $0.215), which like 5-cent American Creek, holds a 20-per-cent-carried interest, had nothing to say.)
Mr. Blaney earns $180,000 per year in salary as president and CEO of American Creek, which is less than the $255,000 per year he got in 2014 as its chief operating officer. Mr. Cremonese got over $111,000 in salary last year from Teuton, while Mr. Storm, Tudor’s majority shareholder and its president and CEO since the spring of 2016, drew just $30,600 in salary in fiscal 2017.
Dr. Catherine Farrow’s TMAC Resources Inc. (TMR), up 17 cents to $9.39 on 168,000 shares, has received assays of up to 22 grams of gold per tonne over 17.6 metres from the Boston zone on its Hope Bay project in Nunavut. A second hole in the latest batch of assays produced 15.9 grams per tonne over 18.4 metres. TMAC also recorded high grades from the Doris BTD zone although the intervals were short, with one hole producing 18.8 grams per tonne across 2.4 metres.
The 52-year-old Dr. Farrow, TMAC’s $500,000-a-year CEO, expressed her pleasure with the “very positive and encouraging results” from TMAC’s initial exploration drilling program at Boston, which will be used to update the company’s mineral resource estimates next year. TMAC lists 17.8 million tonnes measured and indicated at 8.6 grams of gold per
tonne at Hope Bay, with another 7.5 million tonnes inferred at 7.1 grams per tonne, for a total of 6.6 million ounces. About four million of those ounces reside at Madrid; Boston hosts about 1.4 million ounces and Doris about 1.2 million.